Money and Elections

Senior Government

Why so Much Money?

Parties and candidates must have money, without it, they cannot campaign.

“Won't politicians buy their way into office?”

“Will special interest groups buy favors?” “Does this corrupt the election process?”

Campaign Spending

See page 197 The presidential election eats up the most

spending. Congressional campaigns has doubled

since the 2000's. $=radio and tv time, managers,

consultants, newspaper ads, pamphlets, buttons, posters, stickers, office rent, web sites....etc.!

Sources of Funding Parties and candidates draw money from

private contributors and the public treasury. Private and Public Groups:

Small Contributors Wealthy individuals or families Candidates themselves! Political Action Committees (PACs)

Political arms of special interest and other organizations with a stake in electoral politics

Temporary Organizations-fundraisers

Public Funding

Comes from subsidies-a grant of money, usually from a government.

Come from federal and state treasuries Very important at the presidential level.

Regulating Campaign Finance

First regulations in 1907 Today: Federal Election Campaign Act

(FECA) Response to Watergate Scandal Attempt to also close soft money

loophole Congress does NOT have the power to

regulate the use of money in State and local elections. They do this on their own!

Federal Election Commission (FEC) administers all federal law dealing

with campaign finance. Independent agency of the executive

branch. Still somewhat ineffective

Requires timely disclosure of campaign finance data

Places limits on campaign contributions Places limits on campaign expenditures Provides public funding for several parts of

the presidential election process

Requirements Disclosure Requirements

Spotlight the money in federal campaigns No contributions in the name of another

group, no cash gifts over $100, no foreign money

Limits on Contributions Individual=no more than $2100 in primary

and no more than $2100 in the election. Total limits = $101,400 in an election

cycle PACs have limits, but they spread out

contributions.

Continued

Party nominees can spend no more than $74.6 million

Presidential Election Campaign Fund Every person who pays income tax can

check off to donate up to $6 to the fund They finance conventions and elections

Hard $ vs Soft $

Hard Money Money raised

and spent to elect candidates for Congress and the White House

Soft Money Funds given

to party organizations for such “party-building” activities as recruitment and registration

Most problems exist here!